Hudson Capital Plunges 11% on $1.6 Million Registered Direct Offering
Shares of Hudson Capital Inc. (Nasdaq: HUSN) tumbled nearly 11% intraday Wednesday after it announced a 1.6 million registered direct offering.
The company, which provides financial advisory services has entered a deal with investors for the purchase and sale of 3.56 million ordinary shares at 45 cents per share. The lone placement agent on the deal is Chardan Capital Markets LLC.
The news today follows another direct offering by Hudson, which raised 3.7 million through the purchase and sale of 4.35 million shares at 85 cents apiece in June. However, investors weren't impressed with Hudson, as its shares have lost more than half their value since June 18. The company also has not closed above $1.00 per share since then. By midday, Hudson was trading at 55 cents per share.
Now based in New York, Hudson was formerly known as China Internet Nationwide Financial Services Inc. The company's operations include commercial payment advisory, intermediary bank loan advisory, and global corporate financing advisory services.
In the full year 2019, Hudson revenues plummeted to $1.37 million versus $14.40 million in the prior year, according to a company filing with the SEC in June. Net loss widened to $61.96 million compared with $3.82 million in 2018.
Hudson expects the offering to close on or around July 31.
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